U.S. markets close in 1 hour 23 minutes
  • S&P 500

    3,860.43
    -65.00 (-1.66%)
     
  • Dow 30

    31,614.45
    -347.41 (-1.09%)
     
  • Nasdaq

    13,279.16
    -318.81 (-2.34%)
     
  • Russell 2000

    2,243.53
    -40.85 (-1.79%)
     
  • Crude Oil

    63.63
    +0.41 (+0.65%)
     
  • Gold

    1,774.70
    -23.20 (-1.29%)
     
  • Silver

    27.60
    -0.32 (-1.16%)
     
  • EUR/USD

    1.2189
    +0.0021 (+0.17%)
     
  • 10-Yr Bond

    1.4730
    +0.0840 (+6.05%)
     
  • GBP/USD

    1.4043
    -0.0098 (-0.70%)
     
  • USD/JPY

    106.1860
    +0.3040 (+0.29%)
     
  • BTC-USD

    49,747.27
    -131.23 (-0.26%)
     
  • CMC Crypto 200

    995.47
    +0.80 (+0.08%)
     
  • FTSE 100

    6,651.96
    -7.01 (-0.11%)
     
  • Nikkei 225

    30,168.27
    +496.57 (+1.67%)
     

U.S. antitrust enforcers seen extending review of Lockheed's deal for Aerojet

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Mike Stone
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

By Mike Stone

WASHINGTON, Feb 17 (Reuters) - Antitrust regulators willlikely lengthen their investigation into Lockheed Martin Corp'sproposed purchase of rocket maker Aerojet RocketdyneHoldings Inc, industry executives said, since the dealwould give the No. 1 defense contractor ownership of a vitalpiece of the U.S. missile industry.

The $4.4 billion dollar deal, announced late last year, hasraised eyebrows because Lockheed would take over a company thatproduces 70% of the solid fuel rocket motors and otherpropulsion products used in everything from antiballisticmissiles, to air-to-air missiles.

On Thursday the chief executive of one of Aerojet's biggestcustomers, Raytheon Technologies Corp, said his companywould speak with anti-trust regulators because they have"concerns" about the deal.

"If that merger actually happens, you don't have anindependent supplier in the solid rocket motor side," Greg Hayessaid at the Barclay's Industrial Select Conference on Wednesday.Hayes said, "we're going to make our concerns known to[antitrust enforcers]and the Department of Defense, and we'llsee how this whole thing plays out." The Federal TradeCommission is reviewing the deal for the government, the peoplesaid.

Lockheed competes against Raytheon when it sells tacticalmissiles, often fired from jets, to the Pentagon.

Lockheed's CEO, Jim Taiclet, said the deal could putLockheed into a strong position in the growing propulsion andhypersonic weapons market.

Still, Taiclet has said Lockheed would simultaneously remaina partner to Aerojet's current customer base by "providingoutstanding propulsion products for the entire industry."

The merger, announced on Dec. 20, is in its 60-day antitrustreview period that expires at midnight Thursday and is widelyexpected be extended by the FTC, allowing the agency more timefor review.

Lockheed has anticipated the deal could take until thesecond half of the year to close.(Reporting by Mike Stone in Washington, D.C.Editing by Matthew Lewis)